Acted as co-advisor with the Company’s investment banker to advise a public Rocky Mountain gas utility on replacing its existing line of credit (which was in work-out) with a new bank’s line of credit. Despite a tax judgment greater than the Company’s net assets, a second bank line which had recently been allowed to lapse, uncertainty over the company’s trading and gas hedging policies, a shareholder lawsuit and the resignation of the Company’s CEO one week before closing, the utility successfully put in place a new line of credit, choosing from two aspiring banks.
Key Takeaway: Demonstrating to the banks that the utility’s cash flows were highly predictable and that all risks could be managed without detrimental impact on the bank’s secured position convinced both new banks that they had a better handle on the utility’s financial state of affairs than the bank they replaced.
Assisted the management of a chain of combined gas stations/convenience stores with financing a new concept – an on-airport “Airport Plaza” with auto and truck/shuttle bus refueling (compressed natural gas, gasoline and diesel), car wash, light auto repair, convenience store. Advised on a municipal bond financing using “Recovery Zone Facility Bonds” on one airport, advised on raising equity at another airport, and provide continuing strategic advice on financing additional Airport Plazas.
Key Takeaway: Be prepared to be flexible in financing solutions – a mix that is not immediately apparent may turn out to be the most efficient and timely solution. Don’t accept a “black box” solution unless both sides of the equation know EXACTLY how the black box works.
It is all about convenience: https://www.airportplazas.com
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